Short Introduction to Allied Reliability

1. Allied Reliability
Introduction to
Allied Reliability
What would you
do with more
free time?
Copyright 2009 Allied Reliability, Inc.

2. Allied Reliability
About Allied Reliability, Inc.
• Founded in 1997 as Allied Services Group
– Reliability consulting firm specializing in delivering real business
results via predictive maintenance and reliability through:
• Implementation
• Facilitation
• Coaching
• Education
• Support
– Full-service reliability education, consulting, coaching, and
technical services delivery
– Headquarters in Charleston, South Carolina, USA
– Combined staff of over 200 experienced and well trained
reliability specialists, reliability engineers, instructors, coaches,
technicians, and support personnel
– Employees in 40 States and 8 Countries
– Offices in Europe, Latin America, Canada and the U.S.
– Licensed Partner in Pacific Rim
Copyright 2009 Allied Reliability, Inc.

3. Allied Reliability
Allied’s Mission Statement
• To be the Reliability Supplier of Choice to the marketplace and the
Employer of Choice for people who share our passion to succeed.
• We commit to the following:
– To listen to our customers so that we may integrate our
collection of best practices and standards to meet their unique
needs
– To make a commitment to safely deliver quality services
– To act with integrity and establish trust-based relationships with
our customers and employees
– To proactively respond to our customers and employees by
systematically improving our processes and practices
– To make a long-term commitment to our employees that
empowers them to be leaders in their area of responsibility
– To provide our employees with the opportunities and tools that
will enable them to reach their full potential
Copyright 2009 Allied Reliability, Inc.

4. Allied Reliability
Copyright 2009 Allied Reliability, Inc.

5. Allied Reliability
Allied Reliability
The Market
Reliability
Ops COE
in Maintenance:
PM/PdM Optimization, Criticality,
Walkdown, Failure Mode Analysis,
RCA
Reliability Reliability
in Operations: in Design:
Process Reliability, RCD, DFM, LCC,
Innovation
LEAN, Six Sigma, RBD, Simulation Modeling
RE Stats, ROAR™,
Process Modeling
Copyright 2009 Allied Reliability, Inc.

6. Allied Reliability
ProActive Work Flow Model
Copyright 2009 Allied Reliability, Inc.

7. Al l i e d Re l i a b i l i t y
Why Allied as a partner in Reliability?
• The Approach
• The Proven Track Record
• The Personnel and Training
• The Processes and Tools
• The Global Reach
Copyright 2009 Allied Reliability, Inc.

8. Allied Reliability
The Approach
• Integrated collection of Best Practices
• Highly Standardized
– Personnel Qualifications and Technology Standards
• Business Centric
• Partnership Model
Copyright 2009 Allied Reliability, Inc.

9. Allied Reliability
Best Practice Benchmarking
“Best Practice Plants have Best Practice Behaviors and those
behaviors drive Best Practice Results”
• Focused on 35 Companies that have known corporate reliability
initiatives in 8 verticals
– Automotive, Chemical Processing, Food & Beverage, Metals & Mining,
Petro-Chemical, Pharmaceutical, Power Generation/Transmission Pulp
& Paper
• Focused on 35 Best Practice Elements Across 4 Primary Areas
– Leadership
– Work Management
– Reliability Engineering
– Asset Health Management
• Results represent performance at 633 sites in over 20 countries
• Additional 250 sites in overall database
Copyright 2009 Allied Reliability, Inc.

10. Allied Reliability
Best Practice Benchmarking, cont.
“I could agree with you, but then we’d both be wrong”
Industry Vertical Overall Average
Chemical Processing 523.0
Petro 497.0
Pulp & Paper 470.0
Automotive 467.0
Pharmaceutical 432.0
Metals & Mining 431.0
Power Generation 372.0
Food & Beverage 371.0
Copyright 2009 Allied Reliability, Inc.

11. Allied Reliability
Maintenance Opportunity
% OIL % TRAD
MAINT $ STORES $ % IR
% IR % ON % ON
%
ANALYSIS NDT
QUARTILE % RAV % RAV ELEC
MECH PM BOM
VIBE
Top 1st 1.4% 0.3% 88.5% 71.0% 100.0% 38.1% 51.0% 20.0% 71.0%
Middle 1st 3.1% 0.6% 78.0% 60.9% 91.0% 35.7% 42.0% 23.0% 65.0%
Top 2nd 4.1% 0.8% 60.0% 51.7% 85.6% 29.8% 36.1% 24.0% 59.0%
Middle 2nd 5.7% 1.7% 51.2% 41.2% 83.0% 24.3% 29.8% 27.0% 55.0%
Top 3rd 7.1% 2.9% 44.4% 34.6% 79.8% 19.8% 22.9% 28.0% 50.0%
Middle 3rd 8.9% 4.1% 29.3% 21.2% 69.8% 15.4% 18.7% 31.0% 45.0%
Top 4th 10.8% 5.4% 19.8% 15.0% 63.8% 10.8% 13.7% 35.0% 41.0%
Middle 4th 13.7% 7.4% 9.3% 3.6% 56.7% 5.1% 8.9% 37.0% 36.0%
Bottom 4th 17.3% 12.2% 2.9% 0.0% 48.7% 1.0% 4.1% 39.0% 28.0%
Copyright 2009 Allied Reliability, Inc.

12. Allied Reliability
Case Study Results
Pharmaceuticals Industry
• Prior to Reliability Initiative
– Patented product going off patent
• After Reliability Initiative
– Reactive Maintenance 71% 7%
– Overtime 22% 5%
– Maintenance Employees
(FTEs) 350 250
– Added 9 Planners, 7 PdM Technicians
and 8 Reliability Engineers…
Source: John Schultz Copyright 2009 Allied Reliability, Inc.

13. Allied Reliability
Case Study Results, cont’d
Pharmaceuticals Industry
• After Reliability Initiative
– Availability increased 12%
– Healthy Assets 35% 85%
– Production Deviations to 1/10th of
previous levels
– Maintenance Budget reduced 40%
– Inventory reduced 33%
– Insurance Premiums reduced 30%
Source: John Schultz Copyright 2009 Allied Reliability, Inc.

14. Allied Reliability
Case Study Results, cont’d
Chemical Processing and Mining
• Increase OEE by nearly 30% in 2 years
– 22% reduction in their annual maintenance
expenditure
– $15 million per year on the bottom line
Source: Mosaic Corporation Copyright 2009 Allied Reliability, Inc.

15. Allied Reliability
Case Study Results, cont’d
Power Generation
• Successfully extended time between planned
turnarounds by 30%
– Reduce time in turnaround by 20%
– 23% reduction in maintenance costs
Source: Alliant Energy Copyright 2009 Allied Reliability, Inc.

16. Allied Reliability
Available Training Classes
• Asset Health Assurance (PM/PdM Best Practices) Series
– Overview, Mechanical, Electrical, Stationary
• Reliability Engineering Series
– Reliability Engineering Fundamentals, Reliability
Statistics, Life Cycle Cost Analysis, Root Cause
Analysis, Reliability Centered Maintenance, Condition
Monitoring
• Asset Health Assurance by Design
• Transformational AnalyticsTM
• ROAR™ (Return On Asset Reliability)
• Introduction to PM/PdM
• Developing Effective Work Procedures
• Customized Training Solutions Available
Copyright 2009 Allied Reliability, Inc.

17. Allied Reliability
Processes and Tools
• Based on the collection of Best Practices
• Built by “Users”
• Integration Theme
• Enforces Discipline to Standards
• Drives Transparency
Copyright 2009 Allied Reliability, Inc.

18. Allied Reliability
Asset Health Assurance Model
HOW MUCH HOW WELL
Enabling Tools
Asset OP-1 & PM/PdM
Walkdown Criticality
TEAMTM
Health OP-2 BP
Tool Tool
Matrix Tool Standards Tool
Process Check
Failure Asset
Asset Criticality Corporate Maturity
Modes Health
Catalog Analysis Standards Spider
Analysis Report
Compliance Check
Meets Meets
Meets Meets Meets
Y Y Y Y Y
Minimum Minimum
Minimum Minimum Minimum
Proactive
Standard Standard
Standard Standard Standard
Workflow
Model
N N N N N
Result of non-compliance
Cannot Report Asset Health
Copyright 2009 Allied Reliability, Inc.

19. Allied Reliability
Available Applications
TEAMTM
•
• Walkdown Tool
• Criticality Analysis Tool
• Asset Health Matrix Tool
• Preventive Maintenance Evaluation Tool
• EMP Management Tool
RCM BlitzTM
•
• Procedure Development Tool
• Custom applications can be built for specific
client needs
Copyright 2009 Allied Reliability, Inc.

20. Allied Reliability
Global Reach
• Clients are driving us into the global market
• Strong hubs in the US, Canada, Puerto Rico,
and Western Europe exist
• Signed MOU to form a Joint Venture with
General Physics
– Established operations beyond current reach in:
• Asia – China, India, South Korea, Japan, Malaysia
• Latin America – Brazil and Mexico
– Additional Critical Offerings
• Operational Excellence, Maintenance Excellence,
Leadership Development, Remote Monitoring, Craft
Skills, Operator Care, and Plant Launch
Copyright 2009 Allied Reliability, Inc.

21. Allied Reliability
Impact of a Complete Reliability Initiative
High
+75%
+27%
• Significantly Improved
• Improved Bottom
Bottom Line
Line Performance
Business Process and
Performance
Culture Maturity
• Lack of System
• Practices and Systems
Support
Aligned
Baseline -7%
• Systems are not
•Informal
Complemented by Effective
• Manual Planning
Business Processes
Processes
• Significant Inefficiencies
• Below Average
Business Performance
Low
High
Low Technology Maturity
Source: Brynjolfsson (MIT), Wireman, Troyer, Allied
Copyright 2009 Allied Reliability, Inc.